California-based fintech startup Sawa Credit Inc. raised USD 3 million in a seed funding round. The round took place on April 20, 2022. Precursor Ventures led the funding for Sawa Credit Inc.

Meanwhile, the round was oversubscribed with additional funding from Allegis Capital, Commerce Ventures, Clear Heights Ventures, and Slow Ventures.

Sawa Credit Inc. is the first-of-its-kind platform for an online community to build financial health with underserved borrowers.

Purpose of Funding for Sawa Credit Inc.

With Sawa Credit Inc’s funding for community debt servicing technology, the platform will keep underserved borrowers from defaulting on mortgages and rent. The fresh capital will fund the research and development of the company. The R&D capabilities will focus on additional behavioural science and machine learning-driven research of an online community of homeowners and renters based on their beliefs, situations, socioeconomics, and geographies. 

Simultaneously, the fintech startup’s novel behavioural science-driven incentives will be applied to improve group members’ creditworthiness and financial health.

Meanwhile, the seed funding will enable Sawa to study the participant behaviour. It will further help on the path to finding solutions for credit access and solvency inequality.

What the founder has to say

“Sawa, in Swahili, means ‘all good, no worries.’ We are using science to increase underserved borrowers’ capacity to pay their bills by building a community support network to help them in a time of need and dramatically reduce their fears about financial emergencies. Picture a single dad who has always paid bills on time, and he suddenly gets sick, can’t work, and misses payments on his rent or mortgage. Now he’ll have a community to help him pay and catch up, so he doesn’t default on his loans, and then when he lands on his feet, he will, in turn, pay it forward,” says Charles Phillips, Sawa founder and CEO.

What the investor has to say

“I’m very excited about this innovative solution the Sawa team is building. They are deeply committed to helping responsible consumers who are not well-served by the status quo, and I’m confident they’ll bring much-needed solutions to them. When Sawa succeeds, they will change the financial lives of their customers and the communities in which they live,” said Charles Hudson, Managing Partner of Precursor Ventures.

About Sawa Credit Inc.

Sawa Credit Inc. aims to build a technology platform that uses an AI-driven approach to create a community debt servicing model. 

Sawa’s platfrom rewards underserved individuals for helping defaulters avoid delinquency. Meanwhile, over time they will view Sawa’s platform as a hedge against their delinquencies and defaults. Sawa Credit Inc. addresses the problem of wealth disparity by keeping liquidity in the community. 

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Jasleen Bhatia works as a content writer for VCBay News. She is pursuing her final semester in Bachelor of Business Administration from IIPS, DAVV. Driven by her keen interest in entrepreneurship and finance, she writes business-related articles.


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